(RTTNews) - Thursday, metal processing company Reliance Steel and Aluminum Co. (RS: News ) reported a significantly lower profit and revenue for the third quarter, hurt by a 26% decline in sales volume and a 34% drop in average price.

The Los Angeles, California-based company's third-quarter net income declined to $41.8 million or $0.57 per share from $152.5 million or $2.07 per share a year ago.

On average, eight analysts polled by Thomson Reuters estimated earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Third-quarter revenue plunged to $1.24 billion from $2.57 billion in the comparable quarter last year. Analysts expected revenue of $1.34 billion for the third quarter.

Third quarter results include in cost of sales, a pre-tax LIFO income of $67.5 million, compared to a pre-tax LIFO expense of $79.0 million in the third quarter of 2008 and a pre-tax LIFO income of $75.0 million in the second quarter of 2009.

Tons sold for the third quarter were down 26% from the third-quarter levels and down less than 1% from the second-quarter levels. Average price per ton sold was down 34% compared to the year-earlier quarter and flat with the second quarter of 2009.
For the nine-month period, net income dropped to $56.1 million or $0.76 per share from $416.5 million or $5.65 per share for the same period in 2008. Revenue for the period declined 39% to $4.04 billion from $6.58 billion in the year-ago period.

Looking forward, Reliance said it is uncertain as to business activity in the fourth quarter, which is typically a slower season for the company. The company expects slight downward pressure on pricing for many of its products in the coming months, although pricing seems to be more stable than it was earlier in the year. As a result, the company noted that it not providing earnings guidance for the 2009 fourth quarter.

The company would pay a quarterly dividend of $0.10 per share on January 6, 2010 to shareholders of record on December 4, 2009.

RS is losing $1.76 or 3.96% and is trading at $41.94 on a volume of 2.03 million shares on the New York Stock Exchange.

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by RTT Staff Writer

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